It caught my by surprise that the Securities and Exchange Commission brought a case against a crypto-crap company this week. After the SEC published its “clarification” on the application of federal securities laws to crypto assets I thought we wouldn’t see a crypto case for a long time.
I guess the SEC found the actions of Bitcoin Latinum to be too egregious even for the SEC’s now relaxed view on crypto. From my headline, if you are hiring a marketing company for its “Mega-Shilling” marketing package with “500-700 original posts/conversation daily” on Telegram and Twitter I think your product is all marketing.
The first mistake according to the SEC in its complaint is that the Bitcoin Latinum platform said that its offering was a security offering in its “Simple Agreement for Future Tokens” offering documents. It called itself an “issuer” and its purchasers were “investors.”
What was this crypto-crap supposed to do?
Bitcoin Latinum is a fully insured asset-backed cryptocurrency based on the Bitcoin ecosystem. Developed by Monsoon Blockchain Corporation on behalf of Bitcoin Latinum Foundation, LTNM is a greener, faster, and more secure version of Bitcoin, capable of managing massive crypto transactions while being highly efficient in terms of cost and scalability. As a revolutionary new Bitcoin blockchain-based token, LTNM focuses on disrupting high-growth industries like Media, Gaming, Telecommunications, and Cloud Computing.
According to the SEC, it didn’t do any of that.
Perhaps the final reason for bringing the case is that the sponsors looted the funds raised for the platform for personal uses: $4 million Miami condo, $2.8 million Park City house, $1.4 million in personal credit card charges, and a $160,000 horse.
The SEC has apparently not completely abandoned its enforcement against crypto scams.
Sources:
- SEC Charges Bitcoin Latinum Founder and Affiliated Companies with Allegedly Defrauding Investors in $16 Million Securities Offering
- SEC Complaint
- SEC Clarifies the Application of Federal Securities Laws to Crypto Assets
- Next-generation Cryptocurrency Bitcoin Latinum (LTNM) Continues Expansion Strategy with Eigth Listing on Hotbit Exchange